Tax insight

President Trump imposes Section 232 tariffs on semiconductors

Insight
5 minute read
January 16, 2026

What happened?

President Trump on January 14 issued a proclamation under Section 232 of the Trade Expansion Act of 1962 as amended, 19 U.S.C. 1862 (Section 232) concluding that imports of semiconductors, semiconductor manufacturing equipment, and their derivative products threaten to impair US national security. The proclamation adopts a two-phase approach, immediately imposing targeted trade measures while directing the Administration to pursue negotiations with foreign jurisdictions. As a result, effective January 15, 2026, the proclamation calls for the imposition of a 25% ad valorem tariff on a narrowly defined category of advanced computing chips and certain derivative products described in the accompanying Annex. The action follows a completed Department of Commerce Section 232 investigation and is supported by a White House fact sheet outlining the Administration’s objectives.

Why is it relevant?

The proclamation establishes a new Section 232 tariff framework focused on high-performance semiconductors which are essential to 16 critical infrastructure sectors including the communication sector, the energy sector, and the medical sector. While the tariff applies broadly regardless of country of origin, multiple exclusions are available based on technical parameters and US end use. Companies importing semiconductors or semiconductor-containing products may face new compliance and documentation requirements.

Actions to consider

Companies that may be impacted should assess whether imported products meet the technical performance thresholds outlined in the Annex and confirm applicable Harmonized Tariff Schedule of the United States (HTSUS) tariff classifications. Importers should evaluate eligibility for end-use-based exclusions and prepare to substantiate exclusion claims at entry. Companies should monitor any forthcoming guidance from Commerce and US Customs and Border Protection (CBP), as well as potential broader Section 232 actions affecting the semiconductor sector.

For more details, please read the full Tax Insight linked below.